{"title":"The effectiveness of entry deregulation: Novel evidence from removing minimum capital requirements","authors":"Hua Cheng , Siying Ding , Yongzheng Liu","doi":"10.1016/j.jdeveco.2024.103304","DOIUrl":"10.1016/j.jdeveco.2024.103304","url":null,"abstract":"<div><p>Although minimum paid-in capital requirements impede firm entry, governments worldwide have only recently started to reduce or remove such requirements. This study is among the first to examine the effectiveness of an entry deregulation reform in China that eliminated such requirements. We exploit city–year–month variation in reform implementation and employ a large nationwide administrative dataset of firm registrations, finding that the deregulation strongly encourages firm and job creation. Moreover, we find that the deregulation exerts a pro-competitive effect by encouraging the entry of small and medium-sized firms, private firms, and single-shareholder firms, which diversifies the industrial bases and reduces the industrial concentration of economic activity. Finally, we provide suggestive evidence that the deregulation promotes economic growth in the deregulated cities.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140778490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fracking, farmers, and rural electrification in India","authors":"T. Robert Fetter , Faraz Usmani","doi":"10.1016/j.jdeveco.2024.103308","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103308","url":null,"abstract":"<div><p>The shale gas revolution in the United States induced an unprecedented commodity boom across northwestern India. Leveraging population-based discontinuities in the contemporaneous roll-out of India’s national rural electrification scheme, we show that access to electricity increased total employment and non-agricultural employment in villages affected by this exogenous economic shock, but had no impact on labor markets elsewhere. This combination of two natural experiments highlights how complementary economic conditions drive heterogeneity in the labor-market impacts of rural electrification. It also helps explain the large variation in the reported impacts of such resource-intensive infrastructure investments globally.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140639086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Saubhik Deb, George Joseph, Luis Alberto Andrés, Jonathan Grabinsky Zabludovsky
{"title":"Is the glass half full or half empty? Examining the impact of Swatch Bharat interventions on sanitation and hygiene in rural Punjab, India","authors":"Saubhik Deb, George Joseph, Luis Alberto Andrés, Jonathan Grabinsky Zabludovsky","doi":"10.1016/j.jdeveco.2024.103295","DOIUrl":"10.1016/j.jdeveco.2024.103295","url":null,"abstract":"<div><p>This paper reports the findings of a cluster-randomized control study to assess the impact of India's flagship sanitation program, as implemented in Punjab, that aimed to eliminate the practice of open defecation and improve the awareness and practice of good hygiene across rural Punjab. The study finds that the program interventions specific to the Gram Panchayats (villages) had a modest effect on improving access to toilets and reducing open defecation among households with children in rural Punjab. However, awareness of the importance of handwashing before eating and after defecation among school-going children improved by 8–14 percentage points in treatment arms relative to control, though no significant impact on handwashing practices was observed. Consistent with the problem of implementation failure, the findings indicate the inherent difficulties of implementing bottom-up interventions through a large-scale government program.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140758784","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Andrea Berlanda , Matteo Cervellati , Elena Esposito , Dominic Rohner , Uwe Sunde
{"title":"Medication against conflict","authors":"Andrea Berlanda , Matteo Cervellati , Elena Esposito , Dominic Rohner , Uwe Sunde","doi":"10.1016/j.jdeveco.2024.103306","DOIUrl":"10.1016/j.jdeveco.2024.103306","url":null,"abstract":"<div><p>Adverse health conditions and social conflict constitute major impediments for developing countries. The potential for reducing social conflict by successful public health interventions is largely unknown. This paper closes this gap by evaluating the effect of a major health intervention—the successful expansion of anti-retroviral therapy (ART) to combat the HIV/AIDS pandemic in Africa. Combining exogenous time variation in access to ART with cross-sectional variation in the scope for treatment for identification, we find that the ART expansion significantly reduced the number of violent events in African countries and sub-national regions. The effect pertains to social conflict, not civil war. The evidence also shows that the effect is related to health improvements, greater approval of government policy, and increased trust in political institutions. Results of a counterfactual simulation reveal that the ART expansion reduced the number of social conflict events by about 10%.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000555/pdfft?md5=41bd37019a9c2ab6cba94172dd726ba2&pid=1-s2.0-S0304387824000555-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140766692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Political connections and misallocation of procurement contracts: Evidence from Ecuador","authors":"Felipe Brugués , Javier Brugués , Samuele Giambra","doi":"10.1016/j.jdeveco.2024.103296","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103296","url":null,"abstract":"<div><p>We use new administrative data from Ecuador to study the welfare effects of the misallocation of procurement contracts caused by political connections. We show that firms that form links with the bureaucracy through their shareholders experience an increased probability of being awarded a government contract. We develop a novel sufficient statistic – the average gap in revenue productivity and capital share of revenue – to measure the efficiency effects, in terms of input utilization, of political connections. Our framework allows for heterogeneity in quality, productivity, and non-constant marginal costs. We estimate political connections create welfare losses ranging from 2 to 6% of the procurement budget.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140645707","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kathleen Beegle , Andrew Dillon , Dean Karlan , Christopher Udry
{"title":"Introduction to the journal of development economics special issue on methods and measurement","authors":"Kathleen Beegle , Andrew Dillon , Dean Karlan , Christopher Udry","doi":"10.1016/j.jdeveco.2024.103303","DOIUrl":"10.1016/j.jdeveco.2024.103303","url":null,"abstract":"<div><p>Continued emphasis in development economics on measurement and survey design provides opportunities to expand the research frontier. Yet methods work, particularly survey experiments and mode effect studies, remains scantly published in economics. This special issue contributes to the evolution of development economics by presenting evidence on three broad sets of methodological problems that researchers face: managing measurement error, expanding the scope of measurement, and understanding measurement error mechanisms.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140795648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic development and known natural resource endowment: Discovery rate differentials of oil","authors":"Jonas Hamang","doi":"10.1016/j.jdeveco.2024.103290","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103290","url":null,"abstract":"<div><p>The location of oil reserves plays an essential role in policymakers’ incentives to coordinate supply-side climate policy. In this paper I use data on the location of all historic onshore petroleum discoveries to establish a new stylized fact: Economically developed areas are many times more likely to contain an oil or gas discovery, compared to undeveloped areas. I show that this result is not driven reverse causality or confounding geology. By implication, there exist large additional undiscovered oil and gas deposits in currently undeveloped areas, mainly located outside of Europe and North America. I quantify these deposits to be about 40% of total discovered onshore oil reserves.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140543966","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Shilpa Aggarwal , Dahyeon Jeong , Naresh Kumar , David Sungho Park , Jonathan Robinson , Alan Spearot
{"title":"Shortening the path to productive investment: Evidence from input fairs and cash transfers in Malawi","authors":"Shilpa Aggarwal , Dahyeon Jeong , Naresh Kumar , David Sungho Park , Jonathan Robinson , Alan Spearot","doi":"10.1016/j.jdeveco.2024.103288","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103288","url":null,"abstract":"<div><p>While cash transfers consistently show large effects on immediate outcomes like consumption, limited access to markets may mute their impact on productive investment. In an experiment in Malawi, we cross-cut cash transfers with an “input fair”, designed to reduce transport costs to access agricultural inputs. Cash alone increases investment by 27%, while the joint provision of cash and the input fair increases investment by about 40%; thus, the incremental effect of the input fair is equivalent to about a 50% increase compared to the effect of cash alone. Input fairs alone were ineffective.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140543965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do tax audits have a dynamic impact? Evidence from corporate income tax administrative data","authors":"Christos Kotsogiannis , Luca Salvadori , John Karangwa , Theonille Mukamana","doi":"10.1016/j.jdeveco.2024.103292","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103292","url":null,"abstract":"<div><p>Making use of a unique administrative data set consisting of the universe of administrative filings in Rwanda, this paper investigates the impact of tax audits on businesses’ reporting behaviour. The evidence suggests that tax audits have a positive impact on corporate income and corporate tax liabilities reported for three years after the start of the audit process. The results also suggest that the type of audit matters. While ‘comprehensive’ tax audits have a significant positive effect on compliance, ‘narrow-scope’ tax audits exhibit both a positive and a negative effect during a three-year period after the audit, with the net impact being negative. The implication of this, from a tax compliance perspective, is that ‘narrow-scope’ audits are ineffective and that doing more of those and less of comprehensive ones might have a negative impact on tax compliance. Effective tax compliance strategy therefore requires the careful evaluation of all types of audits.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000415/pdfft?md5=ca4ec5a5104e42501188308de5557102&pid=1-s2.0-S0304387824000415-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140557411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
B. Kelsey Jack , Seema Jayachandran , Flavio Malagutti , Sarojini Rao
{"title":"Environmental externalities and free-riding in the household","authors":"B. Kelsey Jack , Seema Jayachandran , Flavio Malagutti , Sarojini Rao","doi":"10.1016/j.jdeveco.2024.103294","DOIUrl":"https://doi.org/10.1016/j.jdeveco.2024.103294","url":null,"abstract":"<div><p>In addition to generating a negative environmental externality, a household’s water consumption entails another “market failure”: household members free-ride off each other and overconsume. The problem stems from consumption being billed at the household level and the difficulty of monitoring one another’s consumption. We document the importance of this phenomenon in urban Zambia by combining utility billing records and randomized person-specific price variation. We derive and empirically confirm the following prediction: Individuals with weaker incentives to conserve under the household’s financial arrangements reduce water use more when their person-specific price increases. Another prediction is that this overconsumption problem is more acute when the financial benefit of a lower utility bill is shared unevenly among household members. We show that households indeed seem more responsive to a change in the household-level price of water when their financial arrangements are more equal. Our results offer a novel explanation for the low price sensitivity of residential water (and electricity) consumption.</p></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":null,"pages":null},"PeriodicalIF":5.0,"publicationDate":"2024-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0304387824000439/pdfft?md5=25f2a9492faebe3d2f7ca02319372e98&pid=1-s2.0-S0304387824000439-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140548263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}